Is that the bell tolling for BT? Have we reached a point from which they can no longer recover?
Here is some background reading for you (you may well already have come across this in the past couple of days):
1. Ofcom deregulate's UK's retail telecom market (thereby allowing BT to provide bundled services): http://telecomengine.com/article.asp?HH_ID=AR_5653
2. BT Announces BET (extending the reach of DSL to about 12km): http://news.bbc.co.uk/1/hi/technology/8256678.stm
3. Benoit Felten's (Yankee Group Analyst) Blog on the changing role of the 'telco': http://www.fiberevolution.com/2009/09/the-role-of-telcos.html
The quote I will pick out from the first article is that "BT was judged [by Ofcom] to no longer have 'significant market power' in the majority of retail landline markets in the UK". So here we have a former monopoly who has large liabilities on its balance sheet (e.g. pension deficit) and is having to use advances on dated technology (BET) to squeeze even more cash out of its copper plant in a desperate move to win back some of the market power.
So, what of BET? On the one hand you have to say "Oh come on! Another update to the copper plant when all we want is fibre!" but to be honest if you put yourselves in the position of those in the broadband notspots perhaps something is better than nothing and given this technology is readily deployable (following the trials) it is at least progress. Sadly I fear it will mean BT will consider that box ticked and will once again forget about the former notspots who will then be stuck with a sub-standard 1MB connection.
But what now for BT? Well I have to say I am in total agreement with Benoit. Telcos must reinvent themselves and quickly. Both residential and business services are moving into the cloud (by which I mean they will be delivered from beyond your immediate vicinity) and the key requirement to use those services is a high speed pipe.
BT, you still have a role to play in building Digital Britain, just not the role you play today. Move fast or move over.
Wednesday 16 September 2009
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agree, if BT can't stand the heat they should get out of the kitchen. Agree with most of your post except the one that says BET may work. It won't. Bonding needs two lines, and rural areas don't have spare ones to bond, most even share a line with a dacs. Small community ISPs were bonding lines in 2005 if lines were available. It isn't new, and it isn't affordable. (two line rentals to pay to get a couple of shared meg?)
ReplyDeleteTherefore Openreach will need to lay more copper. A total waste of public money when they should be laying fibre. See this post http://5tth.blogspot.com/2009/09/bt-and-big-lie.html
Because that is what BET really is. A big lie.